Lowest ever rental rates on home and property finance
Last month we announced our lowest ever rental rates on our Home Purchase Plan (HPP) and Buy to Let Purchase Plan (BTLPP) product range*. This makes Sharia compliant home finance from Al Rayan Bank more accessible than ever before, to homeowners and landlords.
Our HPP and BTLPP products are based on Islamic finance principles of co-ownership (Diminishing Musharaka) and leasing (Ijara), and operate without interest. We buy the property together with the customer, as partners. Every month the customer makes a HPP payment, which has two elements:
- A rental payment to the bank for to use of the Bank's share of the property
- An acquisition payment to gradually buy the Bank's share.
Over time, a customer’s stake in the property grows as ours diminishes.**
For homeowners, we have a range of products depending on the size of their deposit contribution. Our 90% finance to value (FTV) for example requires a 10% deposit contribution and is backed by the Government’s Help to Buy: HPP scheme which enables Sharia compliant banks to offer home finance with a modest deposit. Al Rayan Bank actually helped the British government to develop the scheme, and is the first bank in the UK to offer a HPP backed by it.
For customers with larger deposits, we have 80%, 70% and 60% FTV HPPs available (requiring a 20%, 30% and 40% deposit contribution respectively). All of our HPP products offer a fixed or discounted variable rental rate except the 90% FTV product.
For landlords, we have 75% and 65% FTV BTLPP products available (requiring a 25% and 35% deposit respectively). These products also offer a fixed and a discounted variable rental rate.
To find out more about Al Rayan Bank’s range of home and property finance products, please visit our home finance pages where you can find out more about our rental rates or request a call back from our customer service team. If you’d like to understand more about how our home and property finance products are structured differently to conventional mortgages, you may find this video by our Head of Sharia Compliance, Dr Samir Alamad useful.
* Lowest ever rental rate applies to 60% FTV fixed rental rate HPP at 2.44% and 65% FTV fixed rental rates BTLPP at 2.99%
** With a rental only BTLPP the monthly payments you make only cover the rent that Al Rayan Bank charges you. With this type of finance you are not acquiring any of our share in the property.
Subject to status. Terms and conditions apply
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP THE PAYMENTS ON YOUR HOME PURCHASE PLAN